Report Overview

A spurring demand for energy-efficient HVAC systems and an increasing number of transportation-related construction projects are expected to boost the growth of UAE HVAC market during the forecast period between 2023 and 2029.

UAE HVAC Market - Industry Trends & Forecast Report, 2029

UAE HVAC market size was estimated to be worth USD 1,893 million in 2022. During the forecast period between 2023 and 2029, the UAE HVAC market size is projected to grow at a CAGR of 4.6%, reaching a value of USD 2,476 million by 2029. Major growth factors for the UAE HVAC market include the flourishing construction industry and increasing government spending to improve the nation's transportation sector quality. Additionally, it is anticipated that a sizable public-private investment in commercial infrastructure development projects to support the expansion of the nation's tourism sector will strengthen the UAE HVAC market as a whole.

UAE HVAC Market – Overview

Heating, ventilation, and air conditioning, or HVAC, is a system for maintaining and controlling the temperature, humidity, and purity of the air in a room or enclosed space. These systems are used in a wide range of commercial, residential, and industrial facilities, such as family homes, apartments, hotels, hospitals, trains, airplanes, and ships. Ventilation is a very important aspect of HVAC as it helps in maintaining indoor air quality, which involves the removal of moisture, odors, smoke, and dust, temperature control, and oxygen replenishment.

UAE HVAC Market

Growth Drivers

Increasing Number of Transportation-related Construction Projects

Middle Eastern countries, including the UAE, are significantly investing in infrastructural development for economic diversification. The UAE has several transportation-related construction projects under its belt. This is consistent with the government's ambitions for Abu Dhabi and Dubai to further boost urbanization and tourism. The nation's expanding need for urban transportation as well as government initiatives to promote tourism and expand the transportation network will have an impact on rail and road construction. With expanding infrastructure, including airports and railway stations, the demand for HVAC is expected to rise during the forecast period.

Restraints

High Maintenance and Installation Cost of HVAC Systems

The high cost of HVAC system installation and operation may limit the market expansion in UAE. This is because the HVAC system includes several high-end parts, including the thermostat, ducting, refrigeration line, outdoor and indoor units, and more. The installation of integrated systems is expensive and challenging to run, which restrains market expansion. Furthermore, a lack of qualified individuals to oversee such complex systems may hinder market expansion further.

Impact of COVID-19 on UAE HVAC Market

The COVID-19 pandemic interrupted resource availability in the country and had a negative effect on the construction industry. Construction projects were delayed due to several issues, including schedule delays, disrupted cash flows, delayed permits, approvals, and inspections, travel restrictions, serious health and safety concerns, and material and equipment shortages. The restrictions on the manufacturing activities and supply chain of HVAC equipment, along with limited operations in the construction industry due to the shortage of labor, are linked to the stagnation of the UAE HVAC market.

UAE HVAC Market

Segmental Coverage

UAE HVAC Market – By Offering

Based on offering, the UAE HVAC market is split into equipment and service segments. The equipment segment is further classified into heating, ventilation, and cooling. The services segment is also sub-segmented into upgrade/replacement, maintenance and repair, installation, and consulting. Due to the country's subtropical arid climate with hot summers and warm winters, room air conditioners hold the most significant market share. 32°C is the approximate average temperature, however, it may frequently reach 37.2°C. Furthermore, the high disposable income of UAE consumers also plays a crucial factor in propelling market growth.

UAE HVAC Market – By Implementation Type

Based on implementation type, the UAE HVAC market is segmented into new construction and retrofits. New construction accounts for the highest share of the UAE HVAC market. The growth is mainly associated with the flourishing construction industry in the country. According to the International Trade Association, the construction industry in the UAE will grow in value by between 3.7% and 4.7% during the next five years. The nation's development program, which focuses on expanding the infrastructure for industry, transportation, and energy, will be the main driver of growth.

UAE HVAC Market – By End User

Based on end user, the UAE HVAC market is segmented into residential, commercial, and industrial. The commercial segment dominates the UAE HVAC market owing to the increasing construction of commercial facilities to promote the tourism sector. The country is becoming a well-liked tourist destination because of the construction of opulent hotels, majestic mosques, exhilarating amusement parks, and elegant skyscrapers. The industrial segment is also gaining traction owing to the flourishing industrial sector. The food and beverage (F&B) sector of the UAE is emerging as a hub for trade in the MENA region.

Competitive Landscape

Major players operating in the UAE HVAC market include Johnson Controls International plc, LG Electronics Inc., Mitsubishi Electric Corporation, Gree Electric Appliances Inc. of Zhuhai, Trane Technologies plc, Danfoss A/S, Carrier Global Corporation, Midea Group Co. Ltd., Daikin Industries Ltd., Zamil Air Conditioners, and S.K.M. Air Conditioning LLC.

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2023 – Khansaheb Industries, an HVAC contractor based in the UAE, signed a distribution agreement to supply LG heating, ventilation, and air conditioning (HVAC) equipment to LG Gulf Electronics' UAE market.

Scope of the Report

By Offering

• Equipment

1. Heating

• Heat Pumps

1. Air-source

2. Water-source

3. Ground-source

• Furnaces

1. Gasoline
2. Propane
3. Electric

• Boilers

1. Water-tube

2. Fire-tube

• Unitary heaters

2. Ventilation

• Air-Handling Units (AHUs)

1. Terminal units

2. Makeup air units

• Ventilation Fans

1. Centrifugal fans

2. Axial fans

3. Domestic exhaust fans

4. Power roof fans

• Fan Coil Units (FCUs)

1. Two-pipe

2. Four-pipe

• Humidifiers/dehumidifiers
• Air cleaners

1. Type 1: High-efficiency particulate air (HEPA) + carbon

2. Type 2: HEPA + carbon + ionizer

3. Type 3: HEPA + carbon + ultraviolet (UV)

4. Type 4: HEPA + carbon + ionizer + UV

5. Type 5: Other technologies

3. Cooling

• Room air conditioners (ACS)

1. Mini splits

2. Window ACs

• Split units
• Ducted splits

1. Water-cooled condensers

2. Air-cooled condensers

• Packaged units

1. Water-cooled condensers

2. Air-cooled condensers

• Variable refrigerant flow (VRF) systems

1. Heat Pump Systems

2. Heat Recovery Systems

• Chillers

1. Centrifugal
2. Screw
3. Scroll
4. Absorption
5. Reciprocating

• Service

1. Upgradation/replacement
2. Maintenance and repair
3. Installation
4. Consulting

By Implementation Type

1. New Constructions
2. Retrofits

By End User

1. Residential
2. Commercial
3. Industrial